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Sustaining Growth

8:21 AM MDT | May 14, 2010 | Arnold Pearlman

The U.S. economy grew at an annualized rate of 3.2% in the first quarter, its third consecutive quarterly gain. Consumer spending rose 3.6%, up from the 1.6% posted in fourth quarter 2009. Capital spending was up 4.1%. Inventory accumulation was positive for the first time since first quarter 2008, an indication that businesses are more encouraged that the recovery will be sustained, analysts say. On the weak side, the trade deficit widened, government spending declined 1.8%, and housing construction dropped almost 11%. The drop in government outlays was...

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